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Thursday 19 July 2007

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Counterfeiting A Multi Million Dollar Business in Costa Rica
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Counterfeiting A Multi Million Dollar Business in Costa Rica
Clothing, compact discs, perfumes, shoes and books are only some of the items in distribution by counterfeiters, who in many cases attempt to sell the knock offs for being original.

In Costa Rica, piracy is a us$200 million dollars a year business according to the Cámara Costarricense Norteamericana (AmCham) that is comprised of some 400 companies, following a study done by CID-Gallup.

According to AmCham, the cost of the fake products is about half of the original.

The investigation reveals that Costa Ricans are "accomplices" in the proliferation of piracy in the country as the poll indicates that 7 out of every 10 questions confessed to having purchase, at least once, a counterfeit item.

The results of the study further indicate that 50% of Ticos (Costa Ricans) prefer counterfeit merchandise because it is cheaper and similar to the original. The lower income sector are the more frequent purchasers of counterfeit products.

The CID-Gallup investigation was of 1.000 people over the age of 16 living in parts of the San José metropolitan area.

According to Lynda Solar, executive director of AmCham, the loss to companies is enormous because of the uneven competition.

"In accordance with Interpol, the piracy business grows at a rate of 8 times faster than legitimate business. For that we are asking the government to take measures", said Solar.

However, it is the preference of the consumer that will have the last word, as 90% of those polled said they recognize a counterfeit when offered and equally agree to buy.

According to AmCham's José Pablo Brenes, there is an organized group of counterfeiters in the country, because, according to Brenes to produce and distribute us$200 million dollars of counterfeit merchandise there is a need for a formalized organization that includes forms of payment and supplying the sellers.

According to the report, clothing and compact discs top the list of counterfeit items preferred by Ticos. Based on the investigation, the total percentage of counterfeit products was broken down to 13% for clothing, 12% for compact discs, 11% for perfumes, 10% shoes and 10% books.
 
 



AmCham's,  Lynda Solar (left)

 

 

 
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